Answer

What management said about CXL and interconnect opportunities (Marvell)

1) CXL: management framed it as a “real” and growing design/attach opportunity

Management said their CXL-based design adoption is being driven by memory-cycle/architecture pressures—specifically, “concerns around the memory cycle… [are] driving additional adoption of CXL based design.”¹
They also connected CXL opportunity to XPU attach expectations, stating they had a plan to drive XPU attach of “over a billion dollars in revenue in the next couple of years,” and that this continues to expand as they expand the customer base.¹
In management’s view, CXL is becoming increasingly important as memory architectures are “endemic and critical” to next-generation infrastructure planning, and Marvell’s “proven solutions now for CXL” are “playing in our favor.”¹
They characterized the CXL market as supported by higher CapEx penetration and inference-driven usage trends (“moving into inferencing”), which they said help size up the opportunity.¹

How “real” was it?

When asked about “specifically the CXL opportunity,” management responded that it is “a very real opportunity” and tied it to both (1) their existing program direction and (2) adoption tailwinds from memory-cycle issues driving CXL design adoption.¹
They also explicitly indicated they may provide more detail later: “More to come on this one.”²
Separately, management reiterated that they expect CXL and NIC products to ramp as part of multiple XPU-attached programs during fiscal 27.³

2) CXL within the broader interconnect / XPU attach framing

Management consistently placed CXL inside an “interconnect + switching + XPU attach” growth model:

They said custom revenue growth is expected to be driven by XPU programs, including ramping CXL and NIC products within fiscal 27.³
They also emphasized that Marvell’s acquisitions and portfolio expansion added PCIe and CXL switch solutions, and that they’re seeing strong interest in PCIe Gen 6 and CXL 3.1 solutions.³
Management further stated they are “well positioned… to provide customers with complete end to end solutions and reference designs consisting of our PCIe switches paired with retimers, as well as our CXL switches paired with our memory expanders.”³

3) Interconnect opportunities: management described broad strength plus accelerating growth

Management’s interconnect commentary was both qualitative (“strategic opportunity”) and quantitative (revenue growth expectations):

They described interconnect as the largest portion of their data center business and said demand is accelerating.⁴
As a result, management increased their fiscal 27 interconnect revenue growth expectations to more than 70% year over year, and said interconnect is also a major driver of the higher fiscal 28 company revenue outlook provided that day.⁴
They attributed interconnect strength to leadership across a broad connectivity portfolio spanning scale out, scale across, and scale up networking.⁴

Specific interconnect sub-opportunities (management’s examples)

Scale out: demand strengthening for 800G products, and 200G per lane 1.6T solutions ramping quickly after their production launch in the second half of fiscal 26; they expected 1.6T revenue to step up again in fiscal 28.⁴
Analog/driver support: they said they have a “formidable position” in broadband analog, and expect quarterly revenue from TIAs and drivers to exceed a $1 billion annualized run rate in the next few quarters.⁴
Coherent light for longer reach: management said they introduced Coherent Light for longer-reach campus architectures, optimized for 2 to 20 kilometers with very low power versus traditional coherent DSPs.⁴

4) Scale-up interconnect as a “massive” opportunity (with CXL adjacency through XPU attach)

Management treated scale up interconnect as a strategic new TAM and linked it to optics and end-to-end system solutions:

They called scale up interconnect “a massive new TAM” and said it “will likely be served by multiple photonic technologies and architectures,” with Marvell investing aggressively to establish leadership across them.⁵
They said market adoption is accelerating from multiple CPO and NPO engagements and therefore they expect scale up optics to ramp significantly in the next fiscal year; they also gave a specific forecast comparison: more than doubling their prior outlook of approximately $150 million that was based solely on Celestial AI.⁵
They emphasized end-to-end integration and customer-facing comprehensiveness: management said they aim to present “full end to end solutions from XPU to switch… and… optical or copper connection” so customers can optimize around the architecture they envision.⁶

5) Management’s “why now” for interconnect demand: AI architectures increasing traffic + memory needs

Management tied interconnect (and XPU attach) demand to AI workload evolution:

They stated that AI clusters increasingly need low-latency switching across longer reaches and more memory, driving more networking and memory-related infrastructure (including NICs, PCIe switches, retimers, and bandwidth demand).⁷
They also said Agentic AI is expected to increase networking and interconnect demand because a single user request may require agents to query models multiple times, increasing data traffic volume.⁸

Bottom line (in management’s words and framing)

CXL: Management said the CXL opportunity is “very real,” with adoption supported by memory-cycle/memory architecture pressures, and with Marvell’s proven CXL solutions positioning them well; they tied it to XPU-attached programs and expected multiple ramps, while indicating more quantitative detail is coming later.¹²³
Interconnect opportunities: Management characterized interconnect as the largest data center business lever, with accelerating demand and a fiscal 27 interconnect growth outlook of more than 70% YoY, plus fiscal 28 upside; they cited strength across scale out/scale across/scale up, highlighted analog driver/TIA momentum, and described scale up interconnect/optics as a “massive new TAM” with accelerating adoption.⁴⁵

References

Marvell Technology, Inc. (MRVL) earnings transcript 2027 - Q1

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Marvell's Growth Prospects with CXL and Interconnect Opportunities in 2027

Sources used

Research question

Answer

What management said about CXL and interconnect opportunities (Marvell)

1) CXL: management framed it as a “real” and growing design/attach opportunity

2) CXL within the broader interconnect / XPU attach framing

3) Interconnect opportunities: management described broad strength plus accelerating growth

4) Scale-up interconnect as a “massive” opportunity (with CXL adjacency through XPU attach)

5) Management’s “why now” for interconnect demand: AI architectures increasing traffic + memory needs

Bottom line (in management’s words and framing)

References

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